Graceland College Center for Professional Development and Lifelong Learning, Inc. v. South Dakota Department of Revenue

Summary

The Supreme Court of South Dakota reviewed whether seminars and services provided by SkillPath, a division of Graceland College Center for Professional Development and Lifelong Learning, Inc., qualified for exemption from South Dakota sales tax. The court held that the seminars were not exempt as vocational schools or continuing education programs under SDCL 10-45-12.1 and affirmed the Department of Revenue's assessment.

Holdings

1. SkillPath's seminars did not qualify as exempt vocational-school or educational services under SDCL 10-45-12.1 because they did not teach the skills necessary to enter a specific vocation or occupation and were more properly classified under SIC 8299, or alternatively SIC 7389, both of which were taxable.
2. SkillPath's seminars did not qualify as tax-exempt continuing education programs under SDCL 10-45-12.1 because they were not shown to update participants' knowledge or skills in a specific occupation.

Questions Presented

1. Whether SkillPath's seminars qualified as tax-exempt educational services or vocational-school services under SDCL 10-45-12.1.
2. Whether SkillPath's seminars qualified as tax-exempt continuing education programs under SDCL 10-45-12.1.

Disposition

affirmed